Unum 2010 Annual Report Download - page 143

Download and view the complete annual report

Please find page 143 of the 2010 Unum annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

141
Unum 2010 Annual Report
Note 9. Stockholders’ Equity and Earnings Per Common Share
Common Stock
In May 2010, our board of directors authorized the repurchase of up to $500.0 million of Unum Group’s common stock. During 2010,
we repurchased 16.4 million shares, at a cost of $356.0 million, including commissions of $0.3 million, under this share repurchase program.
The dollar value of shares remaining under this program, which had an expiration date of May 2011, was $144.3 million at December 31,
2010.
On February 2, 2011, our board of directors authorized the repurchase of up to $1.0 billion of Unum Group’s common stock, in addition
to the amount remaining to be repurchased under the previous authorization discussed above. The $1.0 billion share repurchase program
has an expiration date of August 2012.
On February 4, 2011, we repurchased 7.1 million shares, at a cost of $200.0 million, using an accelerated repurchase agreement with a
financial counterparty. As part of this transaction, we simultaneously entered into a forward contract indexed to the price of Unum Group
common stock, which subjects the transaction to a future price adjustment. Under the terms of the repurchase agreement, we may
receive, or be required to pay, a price adjustment based on the volume weighted average price of Unum Group common stock during the
term of the agreement, less a discount. Any price adjustment payable to us will be settled in shares of Unum Group common stock. Any
price adjustment we are required to pay will be settled in either cash or common stock at our option. We expect the price adjustment to
settle on or before the completion of the accelerated repurchase agreement in April 2011. The shares repurchased pursuant to the
accelerated repurchase agreement completed the $500.0 million repurchase authorization and initiated the $1.0 billion repurchase program.
During 2007, our board of directors authorized the repurchase of up to $700.0 million of Unum Group’s common stock. During 2008,
we repurchased $700.0 million or 29.9 million shares of common stock under this share repurchase program.
The shares repurchased prior to and through December 31, 2010 will be held in treasury until such time as they may be reissued or
retired and are reected as treasury stock in our consolidated balance sheets. The shares repurchased using the accelerated repurchase
agreement were retired as of February 4, 2011.
Preferred Stock
Unum Group has 25,000,000 shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been
issued to date.
Earnings Per Common Share
Net income per common share is determined as follows:
Year Ended December 31
(in millions of dollars, except share data) 2010 2009 2008
Numerator
Net Income $886.1 $852.6 $553.2
Denominator (000s)
Weighted Average Common Shares — Basic 325,839.0 331,266.2 341,022.8
Dilution for Assumed Exercises of Stock Options
and Nonvested Stock Awards 1,382.1 870.0 537.5
Weighted Average Common Shares — Assuming Dilution 327,221.1 332,136.2 341,560.3
Net Income Per Common Share
Basic $ 2.72 $ 2.57 $ 1.62
Assuming Dilution $ 2.71 $ 2.57 $ 1.62